The market strengthened significantly Tuesday. The screened stock ratio hit a recent high at 24.4 to 1.1 favoring buying. Risk drops to LOW. Normally I would expect profit taking tomorrow since the screened stock ratio was so strong, but since we have just been through a couple days of profit taking, including today, I'm expecting a solid day tomorrow.
As you can see, the watchlist includes more volatile stocks than usual, most had strong moves and as a market, there was a high percentage of breakouts.
Strong groups; biotechs, gaming, HMO's, computer software, health insurance, medical equipment, semiconductors and select retail.
We've seen several home builders stocks come up on the screening the last few days, and after the close Beazer Homes (BZH) reported that November home orders were up 48%.
Longs to watch: ARG, BBBY, EDS, ERTS, ISIP, LE, MTON, RETK, THQI and UTSI.
Good Trading!!
Sam
savvy-trader.com |
